Suppose you purchase a five-year, 15 percent coupon bond (paidannually) that is priced to yield 9 percent. The face value of thebond is $1,000. A) Show that the duration of this bond is equal tofour years. B) Show that, if interest rates drop to 8 percentwithin the next year and that if your investment horizon is fouryears from today, you will still earn approximately a 9 percentyield on your investment. C) Show that, if interest rates increaseto 10 percent within the next year and that if your investmenthorizon is four years from today, you will still earn approximatelya 9 percent yield on your investment.